2019-11-20 Finance Committee Minutes - Open SessionFinance Committee Meeting
Open Session
November 20, 2019
MINUTES — OPEN SESSION FINANCE COMMITTEE MEETING
NOVEMBER 20, 2019 AT 4:45 PM
8t" FLOOR COMMON COUNCIL CHAMBER (LUDLOW ROOM), CITY HALL
Present: Councillor D. Merrithew
Councillor S. Casey
Councillor D. Reardon
Councillor G. Sullivan
Councillor G. Norton
Absent: Mayor D. Darling
Also
Present: City Manager J. Collin
Commissioner of Finance and Treasurer K. Fudge
Comptroller Finance C. Graham
City Solicitor J. Nugent
Commissioner Saint John Water B. McGovern
Senior Financial Manager C. Lavigne
Senior Financial Manager D. Arbour
Fire Chief K. Clifford
Common Clerk J. Taylor
Administrative Assistant K. Tibbits
1. Meetiniz Called To Order
Councillor Merrithew called the Finance Committee open session meeting to order.
Moved by Councillor Reardon, seconded by Councillor Sullivan:
RESOLVED that Item 1.4 2020 Tax Base Assessment be added to the agenda.
MOTION CARRIED.
1.1 Approval of Minutes — October 23, 2019
Moved by Councillor Sullivan, seconded by Councillor Reardon:
RESOLVED that the minutes of October 23, 2019 be approved.
MOTION CARRIED.
1.2 Water & Sewer 2020 Operating Budget
Mr. McGovern presented the draft 2020 Utility Operating Budget. The proposed budget is
based on the new potable water rate structure and the East Industrial users. There is no
proposed increase for flat rate customers for 2020, remaining at the current rate of $1428 per
year. A significant shift is occurring in terms of the sewer charge/levy and while it does not
impact the entire customer base, it does impact water -only or sewer -only customers as they
Finance Committee Meeting
Open Session
November 20, 2019
will not receive the offsetting benefit of the change in the sewer levy reduction. Focus
continues on debt reduction, with no new debt being added, which will have a significant
positive impact on rates in the long-term.
In response to a question, Mr. McGovern stated that the uptick in the demolition of derelict
buildings has had a negative impact in terms of billable customers and has reduced the
customer base.
In response to a question, Mr. McGovern noted that based on case law, it is his view that
industrial users cannot be charged a premium in order to subsidize residential potable water
users.
Moved by Councillor Sullivan, seconded by Councillor Casey:
RESOLVED that the Finance Committee approve the 2020 Utility Fund Operating Budget and
submit to Common Council for the December 2nd meeting for approval along with first and
second reading to the amendment to the Water and Sewerage By -Law, By -Law No. M-16.
MOTION CARRIED.
1.3 Common Council 2020 Budget
Mr. Taylor presented several scenarios related to a possible reduction to the goods and services
budget for Common Council and the Mayor's Office. The committee indicated that it would like
to receive input from the Mayor on his Goods and Services Budget, but were in consensus that
Common Council's budget should be re-evaluated for a possible reduction.
Moved by Councillor Norton, seconded by Councillor Sullivan:
RESOLVED that the Finance Committee is supportive of furthering a possible reduction to the
Common Council and Mayor's Goods and Services budgets as a sustainability initiative for
consideration.
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1.4 2020 Tax Base Assessment
Mr. Fudge stated that the Province of New Brunswick issued its tax base information for
municipalities along with information on the equalization grant and community fund. Saint
John's tax base growth is 1.83%. Projections of financial plans have been based on a 1.5%
growth rate; results have exceeded base assumptions. The City will receive approximately
$2.1M in new property tax revenue. Referring to the submitted presentation, Mr. Fudge
reviewed Saint John's performance to its peer communities.
Moved by Councillor Norton, seconded by Councillor Casey:
RESOLVED that the 2020 Tax Base Assessment presentation be received for information.
MOTION CARRIED.
Adjournment
Moved by Councillor Sullivan, seconded by Councillor Casey:
RESOLVED that the open session meeting of the Finance Committee be adjourned.
MOTION CARRIED.
The Finance Committee open session meeting held on November 20, 2019 was adjourned at
5:45 p.m.
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